Important Questions CBSE Class 10th :
Social Science Year 2009 (Solved)
(Major Challenges Before The Indian Economy)
Question .1. What is poverty?
Answer : The inability to get the minimum requirement for life, health and
efficiency is called poverty. In other words, it is a situation in which a
person could not get food, clothing and shelter.
Question .2. What is poverty line?
Answer : The minimum level of income just sufficient to buy the bare means
of subsistence is called poverty line. A line of measurement to judge the
intensity of poverty prevailing among different classes of people.
Question .3. Define unemployment?
Answer : A situation when a person able and willing to work does not get an
opportunity to work is called unemployment.
Question .4. What is meant by ‘disguised unemployment’?
Answer : A situation in which more person are employed on a job, than
required. If by withdrawing some labours the total production does not change,
the withdrawal labour will be known as disguised unemployed labour.
Question .5. What is seasonal unemployment?
Answer : Agriculture is a seasonal occupation. The demand for agricultural
labour is increased at the time of sowing and harvesting. During the interval
between sowing and harvesting, there is a fall in employment.
Question .6. Describe the problem of unemployment in India with special
reference to unemployment in rural areas?
Answer : When economy fails to generate enough jobs, the unemployment
occurred is called structural unemployment. This is the result of the
backwardness and low rate of economic development of a country.
Question .7. What is meant by cyclic unemployment?
Answer : Cyclic unemployment is caused due to slackening of demand for
goods. It is generally witnessed in developed countries.
Question .8. What is technical unemployment?
Answer : When workers are displaced due to introduction of new technology is
called technical or technological unemployment. Example – Introduction of
computers reduces the number of workers.
Question .9. What do you mean by skilled labour?
Answer : The labour having proper training and education to work in a
particular field is called skilled labour.
Question .10. What is meant by construction labour market?
Answer : When workers are employed at the construction site the situation
can be termed as construction labour market.
Question .11.What is agricultural labour market?
Answer : When workers are employed by farmers in their fields the situation
can be termed as agricultural labour market.
Question .12. What is world labour market?
Answer : When the countries all over the world exchange their labourers,
this situation can be termed as world labour market. It takes place in the form
Question .13. State the most common type of unemployment?
Answer : The most common type of unemployment is disguised employment.
Question .14. State the two index numbers used to know the changes in prices?
Answer : (i) Wholesale Price Index Number and
(ii) Consumer Price Index Number
Question .15. What is black marketing?
Answer : Selling of goods at a higher price, by creating an artificial
shortage in relation to demand, is called black-marketing.
Question .16.What is hoarding?
Answer : Goods meant for public sale are kept in go-downs, illegally without
reporting to the government, is called hoarding.
Question .17. What is meant by Public Distribution System?
Answer : Essential commodities are supplied to the people through government
agencies, this is called Public Distribution System (PDS). It is used to ensure
food security to the people, particularly the poor.
Question .18.What is meant by monetary policy?
Answer : The policy of the Reserve Bank of India to control money supply and
credit in economy is called monetary policy. Due to this people consume less and
demand is reduced and thereby price is lowered.
Question .19.What is fiscal policy?
Answer : The expenditure and revenue policy of the government to accomplish
the desired goals is called fiscal policy. In this the money supply in the hands
of the people is reduced which results in the decline in prices.
Question .20. State any two measures to reduce poverty in India?
Answer : Measure to reduce poverty in India are:-
(i) More and more industries should be installed to employ more people to earn
(ii) Cottage and small – scale industries to employ more people and less
machinery may be encouraged.
(iii) Population must be controlled.
Question .21. Mention any two causes of price rise in India?
Answer : (i) When prices of raw material is increased, the cost of
production is increased and this increased cost is added to the existing price.
(ii) When people earn more, their demand for goods and services is increased
which results in the increase in price.
Question .22. Why regulation in prices is needed?
Answer : The main aim of traders is to earn prices and hence sometimes they
raise prices illegally. If there is no increase in the wages of a worker who is
also a consumer, cannot buy goods. If these goods are essential like wheat, rice
and milk, this creates a problem. Hence there must be close watch on the traders
by the government.
Question .23. What is skill development?
Answer : Skill development is to:-
(i) educate and provide specialized training to labour for the increase of
(ii) ensure continuous employment.
(iii) be able to absorb new technology.
(iv) compete with the other developed countries.
Question .24. How is number of poor below poverty line estimated?
Answer : The number of poor below poverty line is estimated by income
method. In this method all those families whose monthly income is less than the
poverty line as fixed by the government, are considered to be Below Poverty Line
Question .25. State the occupation of poverty – ridden family?
Answer : The poverty ridden family includes the unemployed, the landless,
the casual labourers, the agricultural labourers, domestic servants, rickshaw
pullers, hotel and restaurant workers.
Question .26. What is ‘Trickle down effect’?
Answer : Government has given priority to the development of agriculture,
basic and heavy industries to create employment opportunities and bring about
rapid economic development. The benefit from this economic development trickle
down to the poorer section of the society. This is called trickle down effect.
Question .27. Write any three important causes leading to urban poverty?
Answer : Causes of urban poverty are:-
(i) Education not linked to employment.
(ii) Lack of dignity of labour.
(iii) Migration of people from rural areas to urban areas.
(iv) Workers are poorly paid.
(v) They live in slums in unhygienic condition.
Question .28. List two steps for removing illiteracy.
Answer : (i) Universalisation of primary education.
(ii) Encouraging Adult Education Programme.
(iii) Encouraging Literacy Mission Programme.
Question .29.State the ways by which the magnitude of unemployment is
measured in India?
Answer : (i) Through sample surveys and population censuses.
(ii) The information provided by employment exchanges.
Question .30. State the steps taken by the government of India to impart
skills through training?
Answer : (i) The Central Board of Workers’ Education (CBWE)is creating
understanding and enthusiasm among workers for the success of industrial growth.
(ii) There are around 4500 Industrial Training Institute (ITI’s) in India to
produce specialized workers.
(iii) Various ministries of the government of India are providing vocational
education and training.
(iv) There are provision for vocational education in schools after class X.
Question .31. What is entrepreneurial development?
Answer : Self-employment is very crucial for solving unemployment problem of
a country. Government has implemented several schemes for providing capital to
the small enterprises and self-employed person. This schemes are developing
their entrepreneurial ability, guiding them in preparation of project reports
for financial assistance and giving technical and professional help in running
Question .32. Give three reasons for the growing unemployment in urban areas?
Answer : Reasons for growing unemployment in urban areas:-
(i) Insufficient economic development – Under the planned development millions
of jobs were created but the number of job sectors was much more than the number
of jobs and many people remained unemployed.
(ii) Defective education system – In educational system, there is lack of
vocational and professional training.
(iii) Slow growth of industrialization – In urban areas there is slow growth of
Question .33. Explain?
(i) Wholesale Price Index (WPI) and
(ii) Consumer Price Index (CPI) to know the change in prices.
Answer : (i) Wholesale Price Index – Major goods produced in the Indian
economy is included in it. Due to rapid rise in wholesale price index is of
great concern for industries.
(ii) Consumer Price Index – Those items consumed generally by workers of
all categories is included in it. It includes food items, clothing and other
Question .34. How does hoarding lead to black–marketing.
Answer : Some businessman out of their selfishness and personal gain stoop
very low. They begin hoarding things and making artificial crisis in the market.
The prices of those things begin to rise and common people are forced to buy
things in the black market.
Question .35. What is meant by smuggling?
Answer : Sometimes traders illegally brings goods from other countries and
sell them to the desirous people. Due to this the sale of goods produced in our
country is affected and our domestic market suffers. Few traders make profit and
our government loses revenue.
Question .36. What are the causes of poverty in India? Describe?
Answer : Causes of poverty:-
(i) Lack of development of employment oriented industrial pattern.
(ii) Non-implementation of Land Reforms.
(iii) Failure of Poverty Alleviation Programme.
(iv) Unequal Distribution of Income and Wealth.
(v) Underutilised Natural Resources.
(vi) Social factors like illiteracy, casteism, ignorance and joint family system
Question . 37. Mention some important poverty alleviation programme undertaken
by the government of India and explain them?
Answer : Anti-poverty alleviation programme introduced by government of
(i) Swarnajayanti Gram Swarojgar Yojna (SGSY) – To help the existing poor
families to come above poverty line.
(ii) Jawahar Gram Samridhi Yojana (PMRY) – To generate employment for
those men and women who do not get sufficient days of employment in rural areas.
Below poverty line families are targeted.
(iii) Prime Minister’s Rozgar Yojana (PMRY) and Swarnajayanti Sahari Rojgar
Yojana (SJSRY) – For the welfare of the educated unemployed in urban areas.
To provide self-employment to the educated unemployed.
(iv) Employment Assurance Scheme (EAS) and Pradhanmantri Gramodaya Yojana
(PMGY) – To create wage employment for families below poverty line and
improving the quality of life of people in rural areas.
Question .38. How does population growth create unemployment?
Answer : When the number of people increases in a country much faster than
the increase in employment opportunities, the situation lead to unemployment. In
India population increased rapidly and employment opportunities do not due to
slow economic development.
Question .39. State the various programme undertaken by government of India
to generate employment opportunities?
Answer : Programme undertaken to generate employment opportunities:-
(i) Rural Works Programme – Construction of civil works of permanent
nature in rural areas.
(ii) Integrated Dry Land Agricultural Development – Permanent works like
soil conservation, land development and water harvesting are undertaken.
(iii) Natural Rural Employment Programme – To create community assets
like drinking water wells, community irrigation wells, village tanks, rural
roads and schools.
(iv) Rural Landless Employment Guarantee Programme – generating gainful
employment, creating productive assets and improving the overall quality of